Making investment decisions in such tumultuous times, especially with fears of recession looming around the corner, can be a difficult task. But, one can rely on the experts, such as hedge fund managers, who are known for beating the average market returns.
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At this juncture, TipRanks provides investors with a Hedge Fund Trading Activity tool that accumulates data from Form 13-F released by about 468 hedge funds to offer hedge fund signals.
Let’s take a look at the top two oil stocks that hedge fund managers bought the most in the last three months.
Occidental Petroleum (NYSE:OXY)
Based in Texas, Occidental Petroleum engages in the exploration and production of oil and natural gas. The stock has gained 106.45% so far this year.
Oil stocks have been on a roll this year as crude prices hit their peaks following Russia’s invasion of Ukraine. Moreover, in the Q3 earnings call, the company raised its 2022 guidance for all three business segments.
Interestingly, the stock seems to be undervalued when compared with the sector despite, rallying more than 100% this year. Its current P/E ratio of 5.3x is trading at a 35.4% discount to the sector’s median of 8.19x.
Is OXY a Buy, Hold, or Sell Stock?
TipRanks’ Hedge Fund Trading Activity tool shows that hedge funds bought 29.2 million OXY stock last quarter. Four hedge fund managers added the stock to their portfolio. Meanwhile, six hedge fund managers increased their holdings, including Berkshire Hathaway’s Warren Buffett and Joel Greenblatt of Gotham Asset Management.
Currently, OXY stock has a Hold consensus rating based on four Buy, eight Hold, and one Sell recommendations. Moreover, the average price target of $75.15 implies 17.96% upside potential. Remarkably, OXY stock has a “Perfect 10” Smart Score, indicating it can outperform market averages.
Chevron (NYSE:CVX)
The company produces crude oil and natural gas and develops technologies that enhance energy and chemical operations. CVX stock rallied 50.8% year-to-date.
The company’s sound capital spending plans and cost control measures bode well for long-term growth. Moreover, Chevron is investing its impressive cash flows to increase the production level, lower its debts, and enhance shareholder value.
Is CVX a Buy Stock?
According to our tool, hedge funds bought 3.4 million shares of CVX last quarter. 16 hedge fund managers added CVX stock. Meanwhile, two hedge funds increased their holdings of Chevron.
Analysts are cautiously optimistic about Chevron’s prospects. It has received five Buy, five Hold, and one Sell recommendations for a Moderate Buy rating consensus. The average price target of $190.82 implies 9.96% upside potential. CVX stock has a Smart Score of 8 out of 10 on TipRanks, which indicates that the stock can outperform the market.
Find out which stock the biggest hedge fund managers are buying right now.
